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First, it raised a debt financing round for US$75 million. The names of the four participating financial institutions were not disclosed.
Then, Avista acqui-hired Medellín-based IdeasLab, a product and software development firm, for an unspecified amount.
In a statement, the startup clarified that it will be focusing its efforts (and funds) towards its payroll loaning platform. Credit lines will be allocated particularly towards elderly people in rural and low-income cities in Colombia.
Avista and fintech solutions for the elderly
Traditional banks already have quite the reputation of ignoring many members of society. From the millennial with no credit history, to small businesses, they are often snubbed by banks.
But there’s another market that’s not addressed sufficiently, especially in Latin America: the elderly.
Why it’s a big deal: There are an endless number of fintechs aimed at millennials. However tech solutions specifically designed for senior citizens are rare in the industry.
And the elderly represent a significant part of the market in the region that isn’t being tendered to. Of course, that comes with the challenge of guiding these new users into understanding how a tech product works.
Is it easy? No, otherwise there’d be floods of startups rushing to get grandma on board with their app.
But that’s part of the challenge: finding the right approach to these users who are “new” to tech.
Related articles: Tech and startups from Colombia!